The bill amends Section 6-13-12 of the General Laws in Chapter 6-13 entitled "Unfair Sales Practices" to update the definition and regulations surrounding the sale and use of gift certificates. The amendment clarifies what constitutes a gift certificate, including various forms such as electronic gift cards, stored-value cards, and prepaid long-distance telephone service cards. It mandates that sellers keep detailed records of each gift certificate sold, including the date of sale, value, identification number, and state of sale. Additionally, it prohibits the imposition of surcharges, service fees, expiration dates, or redemption time limits on gift certificates. Violators of these provisions can face a fine of up to $200. The division of taxation will not escheat funds for unredeemed gift certificates, and any unused portion of a redeemed gift certificate must be reissued or refunded in cash if under $1.00. The section exempts certain gift certificates, such as those from awards programs or prepaid wireless services, provided they meet specific conditions.

The bill also introduces a new provision specifically for state-chartered institutions of higher education, allowing them to refund any unused portion of gift certificates upon an individual's separation from the institution or to apply such funds against the individual's account. If the institution cannot complete the refund or application, the funds are considered abandoned after two years and must be escheated to the office of the general treasurer's unclaimed property fund. The bill emphasizes that these changes would take effect immediately upon passage and that state-chartered institutions of higher education may refund gift certificates upon an individual's separation from the institution.

Statutes affected:
2511  SUB A: 6-13-12
2511: 6-13-12